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BUSINESS ADVISORY

Tax Audit Checklist (AY 2025-26)

Every successful audit depends on one thing – well-prepared documentation. By keeping the following records ready, you not only save time but also avoid unnecessary queries and last-minute stress. This checklist has been carefully structured to cover both statutory requirements and practical needs, ensuring a smooth and efficient audit process.

LLP vs Private Limited Company

Identity & General Information

  • PAN, Aadhaar, and Income Tax login credentials (if shared).
  • Copy of latest ITR acknowledgement and computation.
  • Business registration documents – GST, PF, ESIC, PT (as applicable).
  • Loan/OD sanction letters, EMI/repayment schedules.
  • Copies of any notices, intimations, or orders received during the year.

Banking & Financial Data

  • Bank account statements for all current, savings, OD/CC accounts.
  • Loan and overdraft statements, including interest certificates.
  • Confirmation letters from banks, NBFCs, and major creditors/debtors.

Books & Records

  • Trial balance and ledgers (general, debtors, creditors).
  • Cash book, petty cash book, and bank book.
  • Inventory records/valuation sheet with quantitative details.
  • Fixed asset details – additions, deletions, depreciation.
  • Provision schedules – salary, bonus, gratuity, leave encashment, etc.

GST & Other Indirect Tax Compliance

  • GSTR-1, GSTR-3B, and annual return (GSTR-9/9C if applicable).
  • Input tax credit workings – availed, reversed, disallowed.
  • Turnover reconciliation between GST returns and books.

Direct Tax Related Documents

  • TDS & TCS certificates (Form 16A/27D) with reconciliation to Form 26AS.
  • AIS/TIS download and reconciliation with accounts.
  • Details of deductions/disallowances u/s 43B (PF, ESI, GST, interest, etc.).
  • Information of payments made in cash above ₹10,000 (Sec. 40A(3)).
  • Related party transactions covered u/s 40A(2)(b).

Particulars for 3CD Reporting

  • Nature of business and any changes made during the year.
  • Quantitative data: opening stock, purchases, sales, closing stock.
  • Loan/deposit transactions attracting Sec. 269SS / 269T.
  • CSR expenditure, donations, and contributions (if applicable).
  • Details of foreign transactions or international dealings (for Sec. 92E).

A tax audit is not just a compliance exercise — it’s also a health check-up of your business. The more organized your records are, the faster and smoother the audit will be. Keeping your documents in well-labeled folders (Bank / GST / Loans / Ledgers / Compliance) will save time and minimize back-and-forth communication.
Together, let’s make this audit seamless, accurate, and stress-free